How much should Jaki charge?

$5.$ State the final ongoing monthly costs you come up with. This should now include the monthly payment for her SBA loan!

$6.$ In the Chapter $1$ Project, I asked you to consider the cost of driving her car on the job. Assume that Jaki decides to bill the mileage on her car as an additional fee to the client so it will show up as a separate line item on the customer invoices.

$7.$ Assume Jaki wants to pay herself $$77$ an hour for her work. Create a cost equation using $t$ as a variable to indicate the number of billable hours Jaki works in a month. $C=77t+$ ongoing monthly costs

Do NOT put numbers in for $t$ or $C$ at this point. This is an equation you are going to use to determine how much to charge the customers. NOTE: the $$77$ per hour is NOT what she is charging the customers. This is what she is paying herself just as if she were an employee of the business, which is how she should think of herself.

$8.$ How much will Jaki need to charge her clients in order to pay herself and her monthly ongoing expenses? Here is how you can figure this out:

a$.$ We will use a variable called $P$ which is the per hour price she will advertise that she charges her customers. Then we want to know when the revenue $)=(Pt$ will equal the cost above in $7.$ So you will create the equation:

$Pt=77t+$ ongoing monthly costs

b$.$ Notice we now have one equation with two variables, $P$ and $t.$ Pick a reasonable value for $t,$ you will only need one. This could be the amount of time she may want to work in a week. Substitute that value into the equation in part a and then solve for $P.$ That is the price per hour she should charge her clients.

Rubric:

Did students answer all questions posed above?

Are the answers reasonable given the type of business in the problem?

Was the monthly loan payment calculated correctly?

Are the equations created in #$7$ and $8$ correct based on information given on the cost sheet?

A: meets all criteria with very minor errors

B: meets all criteria with no more than one substantive error in arithmetic

C: meets two of the criteria with no more than one substantive error in arithmetic

D: does not meet at least two of the criteria or has substantive errors in most of the arithmetic